Vinci Sees 2012 Net Income Falling on New Taxes

Vinci SA, Europe’s biggest builder, said 2012 net income may fall by as much as 4 percent as the French government introduces new taxes to reduce the country’s budget deficit.

“Ongoing discussions surrounding the proposed 2013 French Finance Law imply that these new charges could negatively impact Vinci’s 2012 net income, which could be down by 3 percent to 4 percent,” the company, based in the Paris suburb of Rueil-Malmaison, said in a statement today.

In July, Vinci targeted 2012 operating income and net income “close to their 2011 levels,” before taking into account the new increase in tax and social charges planned in France.

Chief Executive Officer Xavier Huillard has warned that Europe’s sovereign debt crisis and the collapse of municipal lender Dexia SA may undermine public works in the region and erode traffic on the group’s French toll roads.

Full-year sales will climb by about 4 percent, the company said. In July, it predicted a “slight” increase in 2012 revenue. Sales climbed 7.3 percent to 10.3 billion euros ($13.3 billion) in the third quarter, helped by exchange rates and acquisitions, Vinci said.

Vinci’s backlog stood at a 32.8 billion euros as of Sept. 30, down from 33.2 billion euros at the end of June.

Before it's here, it's on the Bloomberg Terminal. LEARN MORE